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Project Spotlight: SBTi Target Validation

The Situation

An investment firm with a portfolio focused primarily on real estate had publicly committed to setting science-based greenhouse gas (GHG) targets but had limited internal experience with the Science Based Targets initiative (SBTi) process. The company had developed a partial GHG inventory internally, but the methodology did not fully align with GHG Protocol standards and had not been structured for external validation.

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Because the firm operated as both a financial institution and a real estate investor, it needed to navigate overlapping requirements under both the financial institution and buildings guidance from SBTi. Leadership needed clarity on what targets were technically feasible, how different target options would affect the business, and how to prepare for the formal validation process.

The Approach

We began by reviewing and updating the company’s existing GHG inventory to align with GHG Protocol guidance and ensure it met the methodological expectations of SBTi. This work focused on improving emission factor selection, clearly documenting calculation methodology and including missing categories of emissions across scopes 1,2 and 3 to reduce the likelihood of validation challenges.

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Using the updated inventory, we developed multiple target setting scenarios aligned with SBTi methodologies for both financial institutions and real estate portfolios. We then analyzed the implications of different target pathways, helping the team understand the technical requirements, ambition levels, and practical implications of each approach. Throughout the process we supported internal leadership discussions by answering technical questions and clarifying how SBTi guidance applied to the company’s specific portfolio structure. This helped leadership gain confidence in pursuing validation of a concrete and technically defensible target.

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We then prepared the full SBTi submission package and managed the validation process. Because the guidance was relatively new at the time, the review process included several complex and occasionally inconsistent technical questions from SBTi. We worked directly with SBTi reviewers to address these questions and ensure the submission met the evolving interpretation of the standard.​ After successfully obtaining target approval, we provided guidance to the company on communicating the targets externally and on the next steps required to translate the commitments into an actionable decarbonization pathway.

Outcomes and Deliverables

​This project helped the client:

  • Strengthen the company’s GHG inventory to meet GHG Protocol best practices and external validation expectations

  • Understand the implications of different target options to support internal decision making

  • Develop and submit science-based targets (SBTs) aligned with both financial institution and buildings sector guidance

  • Navigate the SBTi validation process and addressed technical questions during review

  • Successfully obtain 3rd party validation of targets

Throughout the project, the client received: 

  • A GHG inventory review and methodological updates aligned with GHG Protocol

  • A summary of the target development aligned with SBTi guidance for financial institutions and building and a comparative analysis of target setting options and implications

  • SBTi validation documentation and technical responses to reviewer questions during validation

  • Post approval guidance on target communication and implementation next steps

Why It Mattered

The project converted the company’s climate commitment into a clear, robust and externally validated target. By strengthening the underlying GHG inventory and preparing the submission carefully, the company was able to navigate a complex validation process during a period when SBTi guidance was still evolving. This gave leadership confidence in the credibility of the targets and established a strong foundation for future decarbonization planning.

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This project represents one example of our work supporting companies with target development. We have completed similar projects for other companies, including multiple science-based target development and validation projects.

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